Sterling Bay looks to cash out of Ace Hotel property in big way

The Chicago developer is seeking $100M for the Fulton Market location

Sterling Bay Andy Gloor and a room in the Ace Hotel, Chicago
Sterling Bay Andy Gloor and a room in the Ace Hotel, Chicago

Sterling Bay is listing the Ace Hotel in Fulton Market, looking for a near-record price for the two-year-old property.

The Chicago developer is seeking $100 million according to Crain’s. The 159-key hotel is located at 311 North Morgan Street. If Sterling Bay gets that amount, the $629,000-per-room price would make it the second most expensive ever in Chicago, Crain’s reported.

Sterling Bay acquired a two-story industrial property on the site for $4 million in 2013, and four years later, the Ace Hotel opened. Bank of America provided Sterling Bay with a $41.5 million loan on the property in 2016. The developer refinanced last year with a $44 million loan from LoanCore Capital, Cook County records show.

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The record for most expensive hotel sale was the $697,000-per-key sale of the LondonHouse in 2016 for $315 million, according to Crain’s.

Shapack Partners jumpstarted the Fulton Market hotel scene when it opened the Soho House at 113 Green Street in 2014. Next month, another hotel will open in a Shapack property when the 182-key Hoxton Hotel debuts at 200 North Green Street.

Meanwhile, work continues on the long-delayed Nobu Hotel at 854 West Randolph Street.

HFF’s Ryan Lindgren and Tony Malk have the Ace Hotel listing. [Crain’s]John O’Brien